Green energy is the rave now, not just in Africa but worldwide. But even if it weren’t, the Nigerian electricity situation will make anyone look for an alternative energy source.
Plus, getting solar energy sources may be just what your business needs to boost productivity. Of course, no one will pass up on the opportunity to tune things up at the office.
Good thing is, it’s possible to install solar in your office space. But you’ll need to spend a lot of money for it. Now, the question is… where will you raise money for your solar installation set up without dipping your hands into your business capital?Â
If these thoughts are running through your mind, you’re not alone. A lot of business owners are thinking about getting solar installations but are limited by finances. Fortunately, we have the answer. Read on to learn 5 ways to raise money for your business office solar installation in Nigeria.
5 Ways to Raise Money for Your Business Office Solar Installation in Nigeria
1. Government Intervention Grant
The Nigerian government is well aware of the electricity challenges in the country. As a result, they offer several intervention programs to help businesses gain funds for solar installation. While many business owners may not be aware of this, the federal government offers a grant that allows businesses to access up to 6 million naira to install solar in their business office.
One of such interventions is the Solar Power Naija Programmer which the FG launched on December 1, 2020, through its implementing agency, the Rural Electrification Agency (REA). This initiative aims to promote the use of solar power in Nigeria, particularly in commercial establishments. Business owners can leverage this opportunity to secure funding for their solar installation projects.
To access these funds, businesses need to submit a proposal outlining their solar installation plans and how it can make your business more profitable. To get started, visit the NEA website to get more detailed information on the application process.Â
Also Read: How Much Money Can You Really Save with Solar Panels?
2. National and International Business Grants:
There’s help available for businesses, including yours. Every year, different foundations and organizations invite businesses to apply for grants and pitch their businesses. These grants can come from both national and international sources.
Organizations like the Tony Elumelu Foundation and the African Development Bank often have funding opportunities for businesses operating in Nigeria.Â
Additionally, international bodies such as the United Nations or the World Bank sometimes provide grants for sustainable energy projects in developing countries. You can thoroughly research and apply to these grant programs to secure the funding you need for your businesses’ solar installation projects.
3. Investor Funding
There’s nothing you can’t get investor funding for as long as your business is profitable. If you have evaluated your business and found out that power is your biggest challenge and installing a solar system will make a significant difference, reach out to investors immediately. For some equity and sometimes a reasonable interest rate, some investors will be happy to offer you the funds you need.
While this is a great method of raising money, you have to consider if you want to sell some of your stake in your business for funds, among other concerns. After careful consideration, if you think this is a route you can take, then by all means, get your pitch ready and begin to source for investors.
You can find interested investors through networking events or angel investor groups. Here, you may be able to find wealthy individuals that can give you the funding you need for some interest in return.
You can also go online on platforms such as AngelList or Gust to pitch your business to investors. If you are able to prepare a comprehensive business proposal that outlines the benefits of your solar installation for your business, you are good to go.Â
Also Read: How to Choose a Reliable Solar Installation Company in Port-Harcourt
4. Loans from Commercial Banks and Banks of Industry
Commercial banks and the Bank of Industry (BOI) are another avenue for obtaining funds for your office solar installation. Many financial institutions have recognized the importance of supporting businesses in adopting clean energy solutions. They offer loan products that are meant to assist businesses in financing solar projects.
Approach your bank or the Bank of Industry with a well-detailed business plan, highlighting the benefits of solar installation for your office. Ensure that your proposal includes a comprehensive financial projection and a repayment plan. Some banks may require collateral, so be prepared to provide assets or guarantees to secure the loan.
The Bank of Industry, in particular, plays a crucial role in supporting industrial development in Nigeria. Explore their various loan options and find one that is in line with your business needs. Remember to compare interest rates and loan terms from different banks to choose the most favorable option for your solar installation.
5. Crowdfunding
This is like appealing to the public for money, but it’s as effective as the other four. So, if the other methods fail, here’s one more method you can turn to.
If you can write a good value proposition for your business or show how much your business/product is unique, you can win hearts and money through crowdfunding. This is because the people you are presenting your business to want to know that their investment will make a difference.
You can go on platforms like Kickstarter, Indiegogo, or local crowdfunding platforms in Nigeria to source for funds. create campaigns for your solar installation project. Create a good crowdfunding pitch that highlights the positive impact of your solar installation on the environment and your business operations.
Also, clearly outline your goals, the amount of money needed, and the benefits backers will receive. Note that crowdfunding not only provides financial support but also raises awareness about your business.Â
Also Read: How Installing Solar Can Increase the Value of Your Property
Secure the Funding You Need for Your Business Office Solar Installations
Usually, the thought of financing your business office solar installation in Nigeria may look challenging and even impossible to achieve especially if you are a small business owner.
But with the right approach, you can secure the money you need to adopt renewable energy. You can take on the different fund raising options one after the other until you find the right one that works for you.
Learn how to search for grants and write great pitches, they will come in handy in this journey. Take the leap towards going solar today and start your funding journey.
